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LME Nickel Gains Last Week,Indonesian Ban Helping The Prices

Monday, January 13, 2014

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LME Nickel has gained by 2.26% from last week on the back of Indonesian mining ban that is aiding the three month prices. When last checked, Nickel three month prices were trading at $ 14026 per tonne, up from $ 13715 per tonne on Friday last week. The uncertainty in relation to mining ban is expected to aid the prices of Nickel. It should be noted that Nickel is used for making austenitic stainless steel.

The main consumer of Nickel ores is China. Indonesia was exporting a large chunk of its unprocessed ores to China, but now after the news of ban, it is expected that the flow will slowly start dipping. This will create a supply shortage of raw material.

MCX Nickel was the outperformer of Monday with prices gaining by 0.93% to Rs 859.3 per kg. The rally is all the more commendable considering other metals that are still struggling to find any grip in the intraday markets.